Facial scanning could soon be a way to pay at Aussie retailers, but shoppers said they would need certain assurances before they hopped on the bandwagon. (Source: Instagram/LinkedIn)
Digital payments are the preferred method for Aussies these days compared to cash, but we could soon be paying for items in a completely new way. Facial Recognition Payment Technology (FRPT) is growing in popularity in some places across the world and an expert believes it's only a matter of time before it makes its way to Australia.
Forget fumbling for your credit card, smartphone or watch at the checkout as there is technology available that allows you to pay with just a scan of your face. Queensland University of Technology (QUT) Professor Gary Mortimer told Yahoo Finance their recent study revealed Aussies would happily adopt this new payment method.
"If it's growing at the size it is, and we're talking about millions of people using it, potentially we'll start to see it coming to Australia," he said.
"The technology is already here. We just need to put it into a situation where we can now pay for goods using our face or our palm."
But he said there's a long road ahead before it becomes as common as payment methods already established in Australia.
Security, privacy and data collection
There's already enough panic about scams, personal information being hacked, and data breaches, so it's no surprise that security and privacy were big concerns from Aussies about the idea of using facial recognition as a payment method.
Professor Mortimer told Yahoo Finance their research showed the public would need "a clear range of information" from each retailer that employs the technology about what they do with your information before they would use a facial scanner to pay for something.
It's not likely to be taken up across the board when it does come to Australia, he said.
"At this stage, Aussie shoppers tend to be more focused on doing it in a physical store first before moving online," Mortimer said.
"And they are also keen to adopt it, or were more encouraged to adopt it if they were given some incentives, bonus points, or a discount."
But the technology raised big questions about who would ultimately store your facial data. Would it be your bank? Your local supermarket? A third-party? Mortimer said this major question has to be answered before the technology could survive.
It could pave the way for Aussies to spend more
An investigation revealed earlier this year that using physical money can help you better manage your finances because you not only can keep pace with your money but there's also a certain "pain" point in handing over cash.
“When we make consumption decisions and purchases we tend to feel some pain and some happiness," University of Melbourne senior lecturer in marketing Alex Belli told Yahoo Finance.
"You can feel pain because you are not sure if you can justify the purchase that you made or because you feel guilty about buying a certain product."
On the flip side, if you remove even more mental barriers to paying for something, then it could be a slippery slope.
QUT's research found that some Aussies were worried they would start spending beyond their means if they were able to pay for something with just their face.
"If I just look at the screen I pay for my goods... so I'm losing track of what I've actually spent," Mortimer explained.
How would it work in Australia and what are the benefits?
The QUT research found that Aussies would have to see the convenience value of FRPT for it to gain a foothold here.
"When we look at what retailers are doing, they're constantly looking to evolve that transaction and take that pain point out," the professor said.
The benefits of introducing a payment method like this, according to emerging technology expert Patrick Mutabazi, are as follows:
Convenience: It can eliminate the need to carry a credit or debit card, remember your passwords or have your smartphone or smartwatch on you at all times.
Speed: You wouldn't have to spend time trying to get your usual payment methods out of your pocket or bag as you'd just need to pose for the camera and you'd be good to go.
Hygiene: Because you're not touching anything, the FRPT can ensure you don't come into contact with any bacteria that can be associated with exchanging cash.
Potential Security: Advocates believe it could be another security buffer to prevent hackers from using your payment details as they would have to have a perfect clone of your face to pay for anything.
But we already have the ease of tapping and going at the supermarket checkout, for example, so it might be a tough sell to get Aussies on board with scanning their faces unless their hands were full or had limited mobility.
Mortimer said the technology would likely exist with a third party rather than the banks or the retailer.
In much the same way that retailers have payment terminals from the likes of Square or Tyro, the FRPT machines could be provided by a company that would also store all the data.
According to The Conversation, the biometric scanning already being used globally for payments is similar to the cameras deployed at airports where your face is scanned when you're coming in or leaving a country.
Where has FRPT emerged in the world?
The facial recognition payment technology has already been rolled out in places like China, Russia and a few African countries.
There were 61 million FRPT users in China alone six years ago and that has exploded to more than 760 million in 2022.
The global market size for this type of technology was valued at $6.8 billion two years ago and is expected to grow to more than $8 billion by 2030.
Mastercard announced two years ago it would be rolling out biometric payments for users and said they could "pay with a smile or a wave".
"The new technology ensures a fast and secure checkout experience, whilst also empowering consumers to choose how they want to pay," it said.
This is the facial and iris recognition payment system that was rolled out in Poland earlier this year. (Source: PayEye)
"The payments system can be integrated with loyalty programs and personalised recommendations to help consumers find products they might be interested in based on previous purchases."
Mastercard partnered with NEC, Payface, Aurus, PaybyFace, PopID and Fujitsu Limited to bring its biometric scanning technology to life and launched its first trial in several supermarkets in Brazil.
Consumers in the South American company were able to upload their facial biometric data to the Payface app and then use their face when paying for their groceries.
Other trials were slated for the Middle East and Asia and the technology arrived in Europe earlier this year, with Poland being the first country to pilot it.
However, the Eastern European nation got a fusion of both facial as well as iris scanning (your eyes) to confirm payment thanks to PayEye’s eyePOS 3 terminals.
“Poland was one of the first countries where contactless payments with Mastercard cards were introduced and we know that Polish consumers are leaders in adopting innovative technologies,” Marta Życińska, Mastercard’s general manager for Poland, said in a statement.
